There are different types of day traders, but the biggest hurdle to overcome is simply knowing which software works best for you. This article is designed to help traders choose the right software for their needs. I love identifying where software can make your life easier and filling you in on which plugin/extensions you should be looking at to take your day trading to the next level.
Whether you’re a blogger, an entrepreneur, a teacher, a student, or just anyone interested in investing…or any one of these topics or not…you probably want to know how to trade stocks. While there are lots of great resources out there, for this test I’ll be using TradingView.com to help me learn about some free software for ‘day trading’ stock market .
What you need to know
Firstly, you’ll find out precisely how these software packages work.
This page will then highlight what to look for from your broker’s software offering, whilst breaking down forexsoftware, stocks software, and others in detail.
It will also touch upon software demo accounts, equipment and the regional differences to be aware of.
How Trading Software Works
Online day trading software can be broken down into four categories:
- Data – Before you start trading for the day you need to know the prices of the stocks, futures and/or currencies you want to trade. For stocks and futures, those prices will usually come from the exchange where they are traded. Forex, however, doesn’t have a central exchange.
- Charting – Smart traders will usually chart prices in charting software. Many vendors will also offer data feeds. These charting packages usually offer basic technical analysis indicators. Opt for a more advanced package and you can benefit from more indicators and the ability to backtest your strategies.
- Trade execution – With your data to hand and after analysing it on a chart, at some point you’ll want to enter a trade. For that, you’ll need some sort of trade execution software, an electronic trading platform. A lot of software today will also allow you to develop your own trading strategies with an application programming interface (API). They may also offer you automated trading capabilities specifically for day trading.
- Broker vs independent vendor – A lot of brokers will offer software directly linked to their in-house systems, but you can also use third-party applications through independent software vendors with brokers that support such integration. The benefit of third-party solutions is that they often have more advanced features and enable you to trade with several different brokers with one single interface.
Tools
Mac or Windows?
When choosing your software you need something that works seamlessly with your desktop or laptop. Any crashes or technical issues could cost you serious profit.
Fortunately, the day trader is no longer constrained to Windows computers, recent years have seen a surge in the popularity of day trading software for Mac.
MetaTrader4, for example, is the worlds most popular trading platform. It’s user-friendly, so combined with an easy to navigate Mac, it’s ideal for both beginners and veterans.
But whether you’re looking for the best trading software for Mac or Windows, check reviews to ensure the technical tools, data feeds, portfolio trackers, backtesting capabilities and any other features you require won’t run into compatibility hurdles.
In addition, make sure the initial trading software download is free. Reputable brokers shouldn’t charge you for the installation privilege.
Mobile Day Trading Software
You can also get extremely useful mobile trading software, normally in the form of an app on iOS and Android. These aren’t designed to replace desktop applications as they lack in the capabilities area.
They are best used to supplement your normal trading software.
A key point…
Make sure when choosing your software that the mobile app comes free.
A good app will provide succinct market updates, trends and the usual stock price tickers. If the app overloads you with information that pushes you towards impulsive decisions, stay clear.
What To Look For
Brokers will often offer standard software, but if you want additional features that may be essential for your strategies then you may have to pay significantly more.
So conduct a thorough software comparison before you start trading with your hard earned capital.
Cost & Need
- Does it meet your needs? – There is no one size fits all. Different trading software will suit different people. Are you following a simple stocks strategy such as moving average tracking? Alternatively, do you want to employ a more complicated multi-conditional strategy? Will you need a direct forex feed? To make sure it caters for your needs get a free software download trial and practice day trading on it first.
- Cost – How much does day trading software cost?It’s all too easy to opt for the cheapest trading software. Whilst this may save you money in the short term, you may be sacrificing essential features your strategy requires. Adding these features later may cost you even more than if you’d invested in a comprehensive software to start with. Also, check to see if the software is available as part of the standard brokerage account, or does it come at an additional cost?
Technology
- Execution speed – Time is money and nowhere is that truer than in the day trading world. Ensure your software will allow you to enter and exit trades swiftly. Check reviews for any trade execution red flags. A few seconds could be the difference finishing being in the red or black at the end of the day.
- Accessibility – Is it a web based software offering? If so, you’ll need just an internet connection to get online, plus you’ll have zero installation, update and maintenance costs. Web based trading software is the best option for beginners. However, if you employ extremely complex algorithms, you may need a computer based installable software. Bear in mind this will be a far more expensive route to go down.
- Features – Day traders rely on short term price movements to turn a profit. What does your strategy need to monitor these price fluctuations? Will you need charts, particular data feeds, news sources, specific market access? If so, check whether these will be included as standard.
- Analytics – Does your strategy depend on technical indicators and pattern recognition? Will the software recognise arbitrage opportunities? A comprehensive analysis software will provide you with all the analytical features you need in one user-friendly bundle
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Day trading can be an exciting way to make money in the stock market. It’s open to anyone, but there are some basic requirements you need to maintain.
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Contents
- Best Day Trading Software
- What is Day Trading?
- Pros and Cons of Day Trading
- Best Features of Day Trading Software
- Find the Best Day Trading Software for You
- Frequently Asked Questions
Best Day Trading Software
While you can technically trade frequently enough to be a day trader with any stock trading software, some offer better tools and resources than others for fast-paced trading.
Here’s our list the best day trading software for beginner to advanced traders:
Best For
Intermediate Traders and InvestorsGET STARTEDsecurely through Webull’s app
Best for Stock Trading: Webull
With $0 commissions and low margin rates, Webull is a great pick for investors looking for low-cost trading. In addition to low-cost trading, day traders gain access to pre-market and after-hours trading, charts with 25 technical indicators, advanced quotes and the latest news.
The broker strives to be your all-in-one platform for day trading by combining fast, low-cost trades with all the market research you could possibly need in a single place. The only thing day traders might miss is the lack of forex trading capabilities.
Best For
All Trading LevelsGET STARTED
Best for News: Benzinga Pro
A day trader is only as good as the information they can access. To spot opportunities early, you need to stay on top of market trends, the latest earnings reports and other market news that can influence stock performance.
With Benzinga Pro, you get exclusive access to breaking news fresh off the BZ wire, real-time alerts the second a headline that matters to your portfolio pops up. You can set custom filters and sentiment indicators for quickly scanning your news feed.
While you can’t trade directly on the platform, it’s a powerful weapon to have in your day trading arsenal.
Best For
Advanced Futures TradingGET STARTED
Best for Advanced Day Traders: NinjaTrader
NinjaTrader offers some of the best charting, backtesting and automation tools available to retail investors. For more advanced traders looking for full customizability of charts and the ability to leverage thousands of indicators, this platform is hard to beat.
You also get backtesting and simulation tools all in the same platform, so you can continue refining your strategy in the same place you do your actual trading.
With access to stocks, forex, futures, options and contracts for differences (CFD), day traders can also leverage custom trading strategies in almost any market they choose.
The main drawback is the lack of educational resources. Beginners might feel lost in the platform and struggle to use the full suite of tools available.
Best For
Professional InvestorsGET STARTED
Best for Stock Screening: Stock Rover
With thousands of securities to choose from, it’s impossible to sift through the market and find the best day trade opportunities without a screener to help you. That screener should be Stock Rover. With over 650 financial metrics, charting tools, and historical financial data, it’s among the best platforms for quickly finding day trading opportunities.
Even with so much data, Stock Rover’s platform is intuitive enough for beginners to navigate and learn how to use the screening tools. The key drawback is that it does not offer brokerage accounts, so you have to do your trading on a separate platform.
Best For
BeginnersGET STARTED
Best for Beginners: Robinhood
Robinhood strives to make financial markets accessible to everyone by providing an intuitive platform and tons of educational tools for new traders to learn the ropes. With real-time quotes and a responsive platform, you can reliably execute trades based on the most up-to-date pricing data.
Traders of all skill levels will also appreciate the $0 commission fees and low margin rates that make frequent day trading cost-effective.
However, Robinhood offers limited indicators, so mobile day traders or more advanced traders who need better charting tools and indicators may find the platform lacking.
Best For
Active TradersGET STARTED
Best for Full-Time Day Traders: moomoo
Offering high quality executions, extended hours, and high-volume order capabilities, moomoo is a great app for the serious day trader. The platform offers commission-free trading, $0 options contracts, and a wide range of market analysis tools.
You can use over 50 indicators, access level 2 market data, and find the latest news on all your positions, all in the same platform where you do your actual trading. The best part is all of this is available at no extra cost when you open an account.
However, it is missing backtesting and automation tools that might make it feel incomplete for some traders.
Best For
Swing TradersGET STARTED
Best for Algo Trading: Zen Trading Strategies
Zen Trading Strategies was developed by a team of quantitative algorithmic traders—that is, traders who use an algorithm programmed with their own custom buy and sell triggers to automatically execute trades.
It offers pre-tested and ready-to-use strategies for day trading and other styles of investing so that investors using the platform can dive right in, even if they aren’t experts.
You can use the strategies as is, tweak them to better fit your needs or develop fully-customized strategies based on your preferred indicators. This is a great option for investors interested in automating day trading activity so they can sit back while an algorithm handles the leg work.
Related link: Best Day Trading Platforms
Conclusion
On that note, I can’t help but wonder what trading software has the most suitable software for Day Trading. Some software only offers customized versions of their platform for day trading. Others are limited in what trades they can make. Can you really trust your day trading strategy with only one or two components of their software? Then again, is there any other product you can easily install or uninstall?